Pundits may disagree on the date, but they agree on one thing: a recession is coming.
When an economic downturn strikes, you need to be ready. At the same time, you can’t miss out on the tail end of a good economy. The current expansion may continue for another year or two, giving you a valuable growth window. The more progress your company makes in that time, the larger your cushion will be when markets do dip.
But, unless you’ve got a crystal ball, that’s a tough balance to strike. The solution? Invest in ways that protect you but also benefit your bottom line.
Growth that protects
Most investments represent risks. Starting a new service line or doubling your sales staff might bring in more revenue, but they also might burn your business. Fortunately, there a few approaches offer the best of both worlds. Consider the following strategies.
1. Refocus on customer retention
When a recession hits, chances are good that your customer base is going to shrink. With that in mind, you might think the best protection is to acquire new customers. But, bear in mind the cost-benefit breakdown of acquisition and retention. Improving retention by just 5% can increase
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